"either an idiot... or possessed of a dangerous agenda and very cunning"

Thursday, 2 August 2007

Cider loses its fizz

I was surprised to see that C&C, the company that makes Magners cider, is in a bit of trouble. Based on my own unique investment analysis (buying the odd bottle when I go out, seeing lots of other people drinking it etc) I had the impression that Magners was doing very well and I would have given it a "strong buy". But according to The Guardian that is not the case.

Again using my analytical skills, I deduced that must be because of the crappy summer we've had, with less people wanting to drink cider when it's chucking it down. And indeed C&C does in part blame the weather. But as the Grauniad points out, it doesn't seem to have affected C&C's rival Scottish & Newcastle, who make Bulmers Cider.

industry insiders pointed to a trading statement from Scottish & Newcastle, which makes Bulmers Original, this month. It said: "In cider, we have also gained share in a market which has continued to grow strongly despite the poor weather."

It seems that the real issue is deals with pub chains. So if you find you can only get Bulmers in your local rather than Magners it's not down to consumer choice, it's the result of fierce haggling between the cider producers and pub chains. Isn't the free market great?

My in-depth research assistant Tony B. (local residential Head Caretaker) carried out quantitative investigations into this matter at the East London “Weatherspoon” in Roman Road, Bow, E2 and his conclusion (the following afternoon) is that they have priced the stuff so cheaply that all the drunks drink Magners, so it has an image problem in the more gentile (and profitable) drinking haunts. It also happens to be Tone’s favourite tipple for some other significant reason.

Tony (and I) are available (at cost) for any similar research projects.

About Me

I work at the International Transport Workers Federation on capital stewardship. I'm interested in developing a stronger voice for labour in the capital markets, responsible investment and corporate governance.
This blog represents my personal views only.